Pakistan reduces petrol price by Rs8 per liter following record hikes in fuel costs

An employee prepares to fill petrol in a vehicle at a fuel station in Karachi on September 1, 2023. (AFP/File)

• Petroleum prices were increased by up to Rs26 last month, taking them beyond Rs330 for the first time in history
• The government expressed possibility the price reduction recently due to the strengthening of national currency

ISLAMABAD: After progressively increasing fuel prices in the country for about two consecutive months, Pakistan offered respite to consumers by cutting the petrol and diesel rates by eight and 10 rupees, respectively, on Saturday.
The country fixes petroleum prices on a fortnightly basis after evaluating fluctuating international energy market costs and the rupee-dollar parity before transferring the impact on domestic consumers.
Last month, the government announced a record increase of up to Rs26 in the prices of petroleum products, breaching the Rs330 mark for the first time in the country’s history as it faced unprecedented inflation.
“In the wake of variations in international prices of petroleum products and the improvement in the exchange rate, the Government of Pakistan has decided to revise the consumer prices of petroleum products,” announced a statement by the finance division.
“The new prices of petroleum products for the fortnight starting 01.01.2023 will be as follows,” it continued while showing the decline in a tabulated form.
The new rate of petrol has dropped from Rs331.38 to Rs323.38, while high-speed diesel is now available for Rs318.18 after the reduction in its previous price of Rs329.18.
Pakistan’s interim information minister Murtaza Solangi said over a week ago that a decrease in petroleum prices was “highly likely” after the Pakistani rupee had gained value against the US dollar due to the caretaker government’s administrative measures.